We’ve previously discussed how the U.S. presidential election may impact U.S. businesses’ financial plans. However, after November, we will also see the effects of Congressional contests realized. The composition of key committees may be altered next year, which could have wide-ranging implications.
There are a number of Congressional committees that are of particular importance for financial professionals and the businesses that they serve, such as the powerful Appropriations Committees, which play a key role in controlling the funding of government operations.
The Senate is seen as a major battleground. With 23 seats currently occupied by Democratic lawmakers and 10 held by Republicans being contested in elections this year, it is very possible that control of the Senate will shift from one party to the other. Democrats currently hold a thin 53 to 47 majority, including two independents who caucus with the party.
The House of Representatives, meanwhile, is likely to stay under Republican control. The party currently holds 242 seats, but needs to retain only 218 to maintain its controlling majority. Anything is possible, however, as the entire 435-member body is up for reelection this year.
Of course, the results of the presidential election will also be critical. The president has the authority to appoint many of the regulatory officials who oversee the nation’s economic system. This is especially true when you consider the additional regulatory bodies and policies created as a result of the 2010 Wall Street Reform and Consumer Protection Act, which commonly referred to merely as “Dodd-Frank.”
However, the implementation of Dodd-Frank is far from complete, and a major shift in the control of key Congressional committees could result in an alteration of the law.
Regardless of the outcome of the election, it is clear that times will continue changing and businesses will need to adapt. This requires ongoing analysis by fiscal experts. Recruitment firms can help companies conduct a fast, effective financial professional search that equips them to study their situation and make solid business decisions going forward.